BANKING AND TELECOMMUNICATION INFLUENCING MIGRATION IN MAJOR CITIES OF PAKISTAN

BANKING AND TELECOMMUNICATION INFLUENCING MIGRATION IN MAJOR CITIES OF PAKISTAN

Abstract

The paper is designed to present the descriptive as well as, the empirical analysis for investigating links between the growing investments and flow of migration towards major cities of Pakistan. Specifically, study explores the link of foreign investment in banking, telecommunication and migration. The descriptive analysis is confined to a single year (2013) while empirical analysis is spread over a time span from 2005 to 2013. The descriptive results show that more migration inflow is experienced by cities with greater Foreign Direct Investment (FDI) index values. The empirical results are in line with strands of theory and expectations of the study with all variables bearing correct signs. The core variables Foreign Banks’ Branches (FB) and Foreign Telecommunication Franchises (FTF), proxies for FDI inflow are highly significant, strengthening the hypothesis that FDI and migration are complement to each other.

The Applied Economics Research Centre (AERC), University of Karachi, was established in 1973. The major functions of the Centre are policy oriented Core/academic Research , Contract Research for Clients, and post-graduate teaching and providing advisory services to the government.